Intel is paying serious attention to small electronics, wearable technology and the do-it-yourself crowd, establishing a new business group to address those market segments.

The new IOT Solutions Group will deal in chips such as the recently announced low-power Quark processor, which will go into wearable devices, connected devices and small computers targeted at the DIY market. Quark is due to appear in Intel's Galileo PC, which is designed for enthusiasts making a range of devices from robots and health monitors to home media centers and PCs.

The division will also deal in low-power Atom chips that go into server appliances or products such as vending machines, ATMs, portable medical devices, energy monitors or in-vehicle entertainment systems. The group will also take charge of software belonging to units like Wind River Systems, which are used by the chips in devices or servers.

The embedded chip market is a fast-growing sector with the proliferation of wearable technology, small electronics and sensors. ARM has also announced many chips for the so-called "Internet of things" market, in which a larger number of devices function as data-gathering instruments. Intel previously announced a New Devices group to investigate opportunities in the wearable market.

"Bringing the intelligent systems hardware, software, services, and platform elements together into one organization will allow us to bring increased value to our customers," said Krystal Temple, an Intel spokeswoman, in an email.

The new IOT Solutions Group will be responsible for selling products that were part of Intel's profitable Datacenter and Connected Systems Group (DCSG) and Software and Services Group. The group will be led by Doug Davis, who has taken on the role of vice president and general manager of the IOT Solutions Group. Davis previously ran the embedded chip group for Intel.

This new group will report to Intel CEO Brian Krzanich and President Renee James.